Why is information on the blockchain extremely secure?
Blockchain technology is experiencing a revolutionary evolution of its use in the market with companies such as Apple, Samsung, and IBM. Platforms like Bitcoin Storm have a robust algorithm that performs the research for bitcoin traders and makes trading easy. Also, it helped many beginners to get started with bitcoin trading. However, the user should notice the tremendous advancements that blockchain systems bring to the industry.
What many industry leaders still need is that blockchain enables highly secure information storage that will prevent unauthorized access that could lead to indecency or personal data theft from external parties.
Blockchain allows for individual information to be secured via cryptography, and cryptography has been proven over time as the most reliable security technology for protecting critical personal data online. Importantly, this also provides a foolproof means for securely accessing user records without exposing sensitive names or e-mail address information in public space.
Blockchain is not only for banks but has cleared a path for businesses and innovators to interact in new ways. The large-scale implications of blockchain have yet to be fully explored, but some potential opportunities include the following:
(1) Improved Security and Protection
Blockchain encryption technology allows companies to perform a wide range of tasks securely. For example, one company developed a smart contract that would allow lenders to manage the mortgage process with the borrower’s digital identity and prevent third parties from accessing information related to the transaction. This innovative use case shows how blockchain could improve fraud protection and safeguard personal data.
(2) Marketing Innovation
Marketing teams could use blockchain to protect consumers from e-mail spam and unwanted calls. Companies are already using blockchain to verify the identity of their customers, which can prevent spam by third parties. The blockchain is a historical ledger of all transactions, including details about the customer’s identity.
Based on this information, companies could decide how to proceed with each marketing campaign. For example, a company could choose not to send an e-mail campaign to a customer who has already opted out in the past. It is an example of how blockchain could prevent spam, create value for consumers, and improve marketing effectiveness.
(3) New Payment Methods
Since Bitcoin, many other cryptocurrencies have emerged. The primary purpose of cryptocurrencies is to use blockchain technology to transact business without the need for any banks or other financial institutions. Blockchain allows people to transfer money almost instantly with very minimal fees. In addition, it removes the need for a significant party to verify transactions, as every transaction on the blockchain is stored on every node/computer in the network simultaneously.
(4) Increased Efficiency
Management could use a blockchain platform in manufacturing to track supply chain data and monitor production levels. It helps companies reduce waste and costs by ensuring materials move through the supply chain promptly without shortages or excesses.
The list of blockchain use cases is growing substantially. As a result, blockchain technology can have a massive impact on the finance and tech industry and supply chain operations in the future. However, it is still in development, so many of these use cases still need to be implemented for real-world applications.
Blockchain has brought the finance industry to a new era through its extreme use cases and disruptive technologies that can improve security and access and remove an array of burdens on the global economy, providing more business opportunities for companies.
(5) Government Use:
The United States Federal Election Committee has been actively studying how blockchain technology could enhance election security. They are working with several partners, including startups and universities, to understand if people can use blockchain to secure voter information such as names and identification numbers.
Another example includes the city of Zug in Switzerland, which has been using blockchain technology for all city records since 2008. In addition, blockchain is being implemented for many other government industries, including healthcare information sharing, land management, taxation, and the energy sector.
Security of blockchain can help the government to secure confidential contracts:
Sovereign governments use blockchain to store records and agreements related to contracts. States could use blockchain for their voting systems in the future. The main reason is that it would help stop election tampering and ensure a fair representation of voters across the country.
Municipalities could use blockchain with other electronic tools, such as Artificial Intelligence (AI) and Big Data software, to accelerate the dispute resolution process, reduce costs, increase efficiency, and improve customer experience across various scenarios, including those involving utilities and property ownership. People could also use blockchain to share information with critical contacts on behalf of citizens.
Reasons behind the extreme security of information on the blockchain:
1. Cryptography:
A person’s public key is shared widely, and the private key is used for decrypting information encrypted by the recipient’s public key. Thus, privacy is preserved because only specific users can access certain data.
2. Immutability:
Blockchain technology eliminates pre-existing centralized third parties such as banks or government that verifies transactions. Blockchain technology could be the future of all industries, but users should address some challenges before implementing it in critical systems. The main challenge mentioned above is hacking & Security breaches.
